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Does the bank's home appraiser know the agreed upon selling price before he/she comes in?
For example, if the asking/offer price is $200,000 and the appraiser already knows it, and he comes in to evaluate...would he maybe say, "Ehhhh sure, okay, it's worth between $195,000 and $210,000 - so $200,000 is fine for us to loan out."
Or are they very strict, and even knowing the asking/offer price, he might say, "Sorry, I only think it is $199,000" and therefore the seller and buyer has to come up with an agreement of how to change the sales price.
I guess I'm wondering if they come up with a figure without knowing what the buyer is trying to lend for, or do they already know the sales price and are a little more lenient about rounding up or down?
If they don't know the price, they will ask the listing agent for a copy of the contract and a copy of the survey when the agent meets the appraiser at the house. I find this ludicrous, but that is the way it is done in most areas.
I would have thought the appraiser would want to be "blind" when he came in, so that there is absolutely no bias one way or the other. For instance, if he comes up with $198k, and then sees the contract is for $200k, he could either say "nope, i'm sticking at $198k" to help the lending company out and be a butt about it , or say "eh i'll round it up" to help the buyer/seller be at that contract $.
In Texas, nobody has to meet the appraiser. Most of them have a supra key. They are told the value of the contract by the lender before going in. If they have a difficult time coming up with the value, they call the listing agent to see what comps they used.
I do believe that they are required to have a copy of the contract. I agree that it should be totally blind so it is without bias, but that is not how it is done.
The appraiser always have a copy of the contract that's supplied by the lender. The appraiser's job is to qualify that the value of the house is at least what the agreed purchase price is. As Realtors, we sometimes say a home should sell in "such and such" range. It's the best we can do because we have no control over what a buyer and seller will agree on. Well, appraisers can't come back with a price that's within a range. They have to have final number. Once they crunch their numbers, they narrow it down to a range and from there they pick a price. That's where the "gut feeling" comes in. If the home is in exceptional condition, they will go at the high end of the range and if not, they will make that final determination. I think it's nice to know that if they could go either way on the choice of a number, then they can look at the contract and use that number if it's close. How would you like to have your appraisal come in $1,000 less than the purchase price? If the seller wouldn't budge, then you would have to come up with an extra $1000 to do the deal or walk away. Remember, an appraiser's opinion is just that, an opinion. If you're so concerned about value, why don't you do an appraisal before you write your offer and then submit it with the contract.
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